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sub foo {
    # 4 spaces or tab is standard. Why be different here?
    # Even this spotty arg check is better than none.
...
    foo($nesting_level+1) if $nesting_level < 3;
    print $indent, "Goodbye from level $nesting_level!\n";
}

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Hello from level 1!
    Hello from level 2!
        Hello from level 3!
        Goodbye from level 3!
    Goodbye from level 2!
Goodbye from level 1!